I remember walking down 6th Avenue in the Gaslamp a few years ago. At the time this development was still under construction. I dropped by the Metrome sales office to see the model. I was told emphatically that I need to buy and that they only have a "few units left for sale."
As it turns out Barratt American still has units for sale and the investors that bought are taking losses.
This is the third Metrome condo on this list. Check the search box at the very bottom of the page to find the other two if you're interested in the details.
Type: Listed on MLS(#066044950)
Resale Price: $344,500
Cost: $349,700
Loss@6% Sales Expenses: $25,870
Loss%: 7.40%
Purchase Date: 12/30/2005
Holding Period: 8 months and counting...
Bedrooms: Studio
Bathrooms: 1
Square Feet: 605
Purchase Details: view
Wednesday, August 16, 2006
Downtown San Diego Condo Downturn Featured in Nationwide News Release
The Boston Globe picked up an Associated Press article that focuses on San Diego.
I will say that while this article is useful I'm amazed that they don't reference the specific losses that people are taking on downtown condos.
With all the new projects coming in 2007 next year will be very interesting.
I will say that while this article is useful I'm amazed that they don't reference the specific losses that people are taking on downtown condos.
With all the new projects coming in 2007 next year will be very interesting.
Downtown Condo at Treo #1313
This is the fourth unit at Treo to make the list. The MLS listing describes this unit as a rarely used vacation home with views from every room that has recently had $60,000 in upgrades.
The price was cut on July 14 from $680,000 to the current price of $649,000.
Note the loss calculation below does not factor in upgrades although clearly that's an additional loss in value.
Type: Listed on MLS(#066041054)
Resale Price: $649,000
Cost: $660,000
Loss@6% Sales Expenses: $49,940
Loss%: 7.57%
Purchase Date: 01/05/2005
Holding Period: 19 months and counting...
Purchase Details: view
The price was cut on July 14 from $680,000 to the current price of $649,000.
Note the loss calculation below does not factor in upgrades although clearly that's an additional loss in value.
Type: Listed on MLS(#066041054)
Resale Price: $649,000
Cost: $660,000
Loss@6% Sales Expenses: $49,940
Loss%: 7.57%
Purchase Date: 01/05/2005
Holding Period: 19 months and counting...
Purchase Details: view
Tuesday, August 15, 2006
Yet Another Acqua Vista Condominium - #1406
Acqua Vista is an apartment conversion in Little Italy. It was designed and developed as an apartment building and was sold midway through the development of the building to Hovnanian and was sold as condominiums.
This is the 6th property to make the list. Note that this condo was purchased from the developer and wasn't a flipper unit. There are many units at Acqua Vista that were resold by the first investors. These units are very clearly deeply underwater at this point.
Type: Listed on MLS(#058072623)
Resale Price: $362,000 (Range priced $350,000 to $375,876)
Cost: $381,000
Loss@6% Sales Expenses: $40,720
Loss%: 10.69%
Purchase Date: 03/09/2005
Holding Period: 17 months and counting...
Bedrooms: 1
Bathrooms: 1
Square Feet: 655
Purchase Details: view
This is the 6th property to make the list. Note that this condo was purchased from the developer and wasn't a flipper unit. There are many units at Acqua Vista that were resold by the first investors. These units are very clearly deeply underwater at this point.
Type: Listed on MLS(#058072623)
Resale Price: $362,000 (Range priced $350,000 to $375,876)
Cost: $381,000
Loss@6% Sales Expenses: $40,720
Loss%: 10.69%
Purchase Date: 03/09/2005
Holding Period: 17 months and counting...
Bedrooms: 1
Bathrooms: 1
Square Feet: 655
Purchase Details: view
Another $100,000+ Loss on Downtown Condo at City Walk #320
City Walk was built in 2003 and is downtown's Marina District.
This may have been flipper unit as the property was relisted nine months after the closing. Below is the price cuts that the unit has undergone.
Price Reduced: 12/14/05 -- $860,000 to $839,500
Price Reduced: 03/21/06 -- $839,500 to $819,500
Price Reduced: 04/24/06 -- $819,500 to $795,000
Price Reduced: 06/21/06 -- $795,000 to $765,000
Price Reduced: 07/17/06 -- $765,000 to $750,000
Type: Listed on MLS(#050071897 )
Resale Price: $750,000
Cost: $810,000
Loss@6% Sales Expenses: $105,000
Loss%: 12.96%
Purchase Date: 02/24/2005
Holding Period: 18 months and counting...
Bedrooms: 2
Bathrooms: 2
Square Feet: 1332
Purchase Details: view
This may have been flipper unit as the property was relisted nine months after the closing. Below is the price cuts that the unit has undergone.
Price Reduced: 12/14/05 -- $860,000 to $839,500
Price Reduced: 03/21/06 -- $839,500 to $819,500
Price Reduced: 04/24/06 -- $819,500 to $795,000
Price Reduced: 06/21/06 -- $795,000 to $765,000
Price Reduced: 07/17/06 -- $765,000 to $750,000
Type: Listed on MLS(#050071897 )
Resale Price: $750,000
Cost: $810,000
Loss@6% Sales Expenses: $105,000
Loss%: 12.96%
Purchase Date: 02/24/2005
Holding Period: 18 months and counting...
Bedrooms: 2
Bathrooms: 2
Square Feet: 1332
Purchase Details: view
Monday, August 14, 2006
$100,000+ Loss on Downtown Condo at Village Walk #406
Here's another large loss on a condo that was purchased in June of 2004.
Village Walk is a nice project located on the main strip in Little Italy.
Type: Listed on MLS(#066035460)
Resale Price: $569,000
Cost: $640,000
Loss@6% Sales Expenses: $105,140
Loss%: 16.43%
Purchase Date: 06/24/2004
Holding Period: 26 months and counting...
Bedrooms: 2
Bathrooms: 2
Square Feet: 1232
Village Walk is a nice project located on the main strip in Little Italy.
Type: Listed on MLS(#066035460)
Resale Price: $569,000
Cost: $640,000
Loss@6% Sales Expenses: $105,140
Loss%: 16.43%
Purchase Date: 06/24/2004
Holding Period: 26 months and counting...
Bedrooms: 2
Bathrooms: 2
Square Feet: 1232
17% Loss at Downtown Condo at Park and 10th on Cortez Hill #107
This building was built in 1983 and is one of the oldest condo projects in downtown San Diego. It's up on Cortez Hill and is in reasonable shape.
Type: Listed on MLS (#066053984)
Resale Price: $410,000 (Range priced $405,000 to $415,000)
Cost: $469,500
Loss@6% Sales Expenses: $84,100
Loss%: 17.91%
Purchase Date: 10/01/2004
Holding Period: 22 months and counting...
Bedrooms: 2
Bathrooms: 2
Square Feet: 1004
Purchase Details: view
Type: Listed on MLS (#066053984)
Resale Price: $410,000 (Range priced $405,000 to $415,000)
Cost: $469,500
Loss@6% Sales Expenses: $84,100
Loss%: 17.91%
Purchase Date: 10/01/2004
Holding Period: 22 months and counting...
Bedrooms: 2
Bathrooms: 2
Square Feet: 1004
Purchase Details: view
Sunday, August 13, 2006
Downtown Condo at Hawthorn Place in Little Italy #105
This is building is only a few years old and is located on the main strip in Little Italy.
The building is fairly nice but doesn't have any amenities.
Type: Closed Sale
Resale Price: $515,000
Cost: $564,000
Loss@6% Sales Expenses: $79,900
Loss%: 14.17%
Resale Date: 08/24/2005
Purchase Date: 10/08/2004
Holding Period: 10 months
Bedrooms: 2
Bathrooms: 2
Square Feet: 1018
Purchase Details: view
Resale Details: view
The building is fairly nice but doesn't have any amenities.
Type: Closed Sale
Resale Price: $515,000
Cost: $564,000
Loss@6% Sales Expenses: $79,900
Loss%: 14.17%
Resale Date: 08/24/2005
Purchase Date: 10/08/2004
Holding Period: 10 months
Bedrooms: 2
Bathrooms: 2
Square Feet: 1018
Purchase Details: view
Resale Details: view
Downtown Condo at 350 West Ash #705
This is a 7th floor studio so it will have somewhat of a view. It's very small.
350 West Ash is an "adaptive reuse" project as it was converted recently from an office building into condominiums.
Resale Price: $328,000
Cost: $330,500
Loss@6% Sales Expenses: $22,180
Loss%: 6.71%
Purchase Date: 06/25/2005
Holding Period: 14 months and counting...
MLS: 061034959
Purchase Details: view
Resale Details: view
350 West Ash is an "adaptive reuse" project as it was converted recently from an office building into condominiums.
Resale Price: $328,000
Cost: $330,500
Loss@6% Sales Expenses: $22,180
Loss%: 6.71%
Purchase Date: 06/25/2005
Holding Period: 14 months and counting...
MLS: 061034959
Purchase Details: view
Resale Details: view
Saturday, August 12, 2006
San Diego House Sales Down Again
The San Diego Union Tribune reports on the new DataQuick numbers which show that "Coupled with a slide in sales activity, the decline in median prices followed a 1 percent year-over-year reduction recorded for June. Taken together, the two summer months showed the first back-to-back downturn in prices here since May and June of 1995."
This article also has some great anecdotes about the psychology of the market changing.
This article also has some great anecdotes about the psychology of the market changing.
Friday, August 11, 2006
Downtown Condo at Village Walk sells for less than 2004 Value - #308
Village Walk in Little Italy joins the list of downtown developments that has had a condo sell for a loss.
Resale Price: $600,000
Cost: $643,600
Loss@6% Sales Expenses: $79,600
Loss%: 12.37%
Resale Date: 05/15/2006
Purchase Date: 08/10/2004
Holding Period: 21 months
Bedrooms: 2
Bathrooms: 2
Square Feet: 1228
Purchase & Resale Details: view
Resale Price: $600,000
Cost: $643,600
Loss@6% Sales Expenses: $79,600
Loss%: 12.37%
Resale Date: 05/15/2006
Purchase Date: 08/10/2004
Holding Period: 21 months
Bedrooms: 2
Bathrooms: 2
Square Feet: 1228
Purchase & Resale Details: view
UPDATE: Foreclosed Downtown Condo at Renaissance #507
The foreclosed unit feature in a post a few week ago has endured a $30,000 price cut. It's important to keep in mind that financial institutions are not in the business of owning real estate and will want to get these properties off of the books.
Also keep in mind that if you use the current Fed Funds rate of 5.25% and add in taxes and HOA that the bank is paying this vacant unit is costing over $3,000 per month to carry. This makes cutting the price to get it sold the most practical move.
The numbers below have been updated to reflect the reduced price.
**************************************
Listed on Foreclosure.com as fully foreclosed this unit ended up being owned by WMC Mortgage Corp which presumably was the lender on this unit.
Check out Foreclosure.com for a free trial to access more information on this unit.
The site shows this as inactive so let's assume the unit has changed hands again.
Resale Price: $599,000
Cost: $760,000
MLS: 061033138
Loss@6% Sales Expenses: $196,940
Loss%: 25.91%
Purchase Date: 10/25/2004
Purchase Details: view
Also keep in mind that if you use the current Fed Funds rate of 5.25% and add in taxes and HOA that the bank is paying this vacant unit is costing over $3,000 per month to carry. This makes cutting the price to get it sold the most practical move.
The numbers below have been updated to reflect the reduced price.
**************************************
Listed on Foreclosure.com as fully foreclosed this unit ended up being owned by WMC Mortgage Corp which presumably was the lender on this unit.
Check out Foreclosure.com for a free trial to access more information on this unit.
The site shows this as inactive so let's assume the unit has changed hands again.
Resale Price: $599,000
Cost: $760,000
MLS: 061033138
Loss@6% Sales Expenses: $196,940
Loss%: 25.91%
Purchase Date: 10/25/2004
Purchase Details: view
Bank Owned Downtown Condo - Park Boulevard West #1110
Here's another condo that's fallen into the hands of the lender.
Park Boulevard West is a low rise project in the Ball Park District.
Resale Price: $364,900
Cost: $380,000
Loss@6% Sales Expenses: $36,994
Loss%: 9.74%
Purchase Date: 11/05/2004
Holding Period: 21 months and counting...
MLS: 061069101
Bedrooms: 1
Bathrooms: 1
Square Feet: 689
Purchase Details: view
Park Boulevard West is a low rise project in the Ball Park District.
Resale Price: $364,900
Cost: $380,000
Loss@6% Sales Expenses: $36,994
Loss%: 9.74%
Purchase Date: 11/05/2004
Holding Period: 21 months and counting...
MLS: 061069101
Bedrooms: 1
Bathrooms: 1
Square Feet: 689
Purchase Details: view
Wednesday, August 09, 2006
Downtown Condo at Metrome #504
Metrome is a new building that still has developer units for sale.
I think this transaction illustrates nicely the pending scenarios for thousands of condos that are being delivered downtown in 2007. Investors or even regular buyers close on their unit from the developer only to compete with many brand new units for sale in the same building.
The loss numbers don't include staging or negative cash flows from holding a vacant property.
Resale Price: $501,000
Cost: $509,900
Loss@6% Sales Expenses: $38,960
Loss%: 7.64%
Resale Date: 07/05/2006
Purchase Date: 09/14/2005
Holding Period: 10 months
Bedrooms: 1
Bathrooms: 1
Square Feet: 994
Purchase Details: view
Resale Details: view
I think this transaction illustrates nicely the pending scenarios for thousands of condos that are being delivered downtown in 2007. Investors or even regular buyers close on their unit from the developer only to compete with many brand new units for sale in the same building.
The loss numbers don't include staging or negative cash flows from holding a vacant property.
Resale Price: $501,000
Cost: $509,900
Loss@6% Sales Expenses: $38,960
Loss%: 7.64%
Resale Date: 07/05/2006
Purchase Date: 09/14/2005
Holding Period: 10 months
Bedrooms: 1
Bathrooms: 1
Square Feet: 994
Purchase Details: view
Resale Details: view
Nationwide Home Builder: Oversupply slump worst in 40 years
Toll Brothers came out today with a cut in its earnings forecast and also discussed some major problems in the national housing market.
When will lenders start to pullback on credit terms and start charging higher interest rates?
When will lenders start to pullback on credit terms and start charging higher interest rates?
Icon - New Condo Development Near Petco Park
Based on my ongoing analysis of the downtown market it appears that Icon will be the first of the many new condo towers under construction to be completed and start closing escrows in early 2007.
Icon's tallest building is 24 stories and will house 327 condos.
They are advertising several units in the MLS with somewhat high prices, certainly not bargains. Typically this means there are a number of unsold, non-MLS listed units as the developers rarely expose their entire inventory, especially it if it relatively high.
I would like to understand how "sticky" the escrows are for this project. If early phase pricing is fairly high we may see a high cancellation rate.
Does anyone know what the early phase pricing was like on this project?
Does anyone know how many unsold units this project has?
Icon's tallest building is 24 stories and will house 327 condos.
They are advertising several units in the MLS with somewhat high prices, certainly not bargains. Typically this means there are a number of unsold, non-MLS listed units as the developers rarely expose their entire inventory, especially it if it relatively high.
I would like to understand how "sticky" the escrows are for this project. If early phase pricing is fairly high we may see a high cancellation rate.
Does anyone know what the early phase pricing was like on this project?
Does anyone know how many unsold units this project has?
Monday, August 07, 2006
Large Loss on Luxury Downtown Condo at The Grand South #1305
This property has been on the market for over a year. It was purchased from the original buyer and relisted six months later. Either this was a "double flip" unit or the owners can't sleep at night with the trains that go by all night long.
The MLS pictures look staged, if so this unit is kicking off a lot of negative cash flow to go with the below cost sales price.
Resale Price: $1,050,000 (Range priced $1,000,000 to $1,100,000)
Cost: $1,150,000
Loss@6% Sales Expenses: $163,000
Loss%: 14.17%
Purchase Date: 10/19/2004
Holding Period: 22 months and counting...
MLS: 061050873
Bedrooms: 2
Bathrooms: 2
Square Feet: 1625
Purchase Details: view
The MLS pictures look staged, if so this unit is kicking off a lot of negative cash flow to go with the below cost sales price.
Resale Price: $1,050,000 (Range priced $1,000,000 to $1,100,000)
Cost: $1,150,000
Loss@6% Sales Expenses: $163,000
Loss%: 14.17%
Purchase Date: 10/19/2004
Holding Period: 22 months and counting...
MLS: 061050873
Bedrooms: 2
Bathrooms: 2
Square Feet: 1625
Purchase Details: view
Metro Lofts Price Cuts
The San Diego Daily Transcript reports that Metro Lofts which is five individual projects in Little Italy and the Ballpark District has just endured price cuts up to $70,000.
These are loft type rental apartments that are being converted into condos. For the most part none of them have amenities.
I am planning to post an analysis of how many units are in each building and how many have closed sale.
Please note that the story on the San Diego Daily Transcript site requires a login.
These are loft type rental apartments that are being converted into condos. For the most part none of them have amenities.
I am planning to post an analysis of how many units are in each building and how many have closed sale.
Please note that the story on the San Diego Daily Transcript site requires a login.
The Sun Always Shines in San Diego
The Voice of San Diego reports on the County of San Diego Assessor Greg Smith's opinion on the market.
Single Family House in Pacific Beach - 1713 Diamond Street
Pacific Beach makes the list with this small home near the beach.
Check out the sales history:
08/12/2005: $560,000
01/17/2003: $370,000
05/22/1998: $171,000
How can a property worth $370,000 in 2003 suddenly be worth $560,000 a few years later?
Resale Price: $535,000 (Range priced $510,000 to $560,000)
Cost: $560,000
Loss@6% Sales Expenses: $57,100
Purchase Date: 08/12/2005
Holding Period: 12 months and counting...
MLS: 062067464
Bedrooms: 2
Bathrooms: 1
Square Feet: 568
Purchase Details: view
Thanks to Lickitysplit from the Piggington site for pointing out this property.
Check out the sales history:
08/12/2005: $560,000
01/17/2003: $370,000
05/22/1998: $171,000
How can a property worth $370,000 in 2003 suddenly be worth $560,000 a few years later?
Resale Price: $535,000 (Range priced $510,000 to $560,000)
Cost: $560,000
Loss@6% Sales Expenses: $57,100
Purchase Date: 08/12/2005
Holding Period: 12 months and counting...
MLS: 062067464
Bedrooms: 2
Bathrooms: 1
Square Feet: 568
Purchase Details: view
Thanks to Lickitysplit from the Piggington site for pointing out this property.
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